January 16, 2020, Greenville / Charleston, South Carolina – Route 2 Capital Partners (“R2CP”) is pleased to announce its investment in CompassMSP, LLC (“CompassMSP” or the “Company”). With operations throughout Florida and along the eastern seaboard, CompassMSP is a leading provider of enterprise-quality managed IT services to small and medium-sized businesses. They offer comprehensive on-premise and cloud solutions ranging from managed IT and VOIP to software development. Proceeds from the investment were used to fund the acquisition of Western Digitech by CompassMSP and will support the company’s strategy to acquire complementary businesses within the managed IT services sector. R2CP provided growth capital in the form of both subordinated debt and equity.
CompassMSP was formed in 2016 to build a world-class managed services provider through a combination of targeted acquisitions and thoughtful investments in sales and marketing, broadening the portfolio of services, and in back office infrastructure. The Western Digitech acquisition is the Company’s ninth acquisition to date.
Jay White, Managing Partner of R2CP said, “The Company has a strong history of growth in the managed services sector. We are excited to combine our experience and resources with the excellent management team at CompassMSP to position the Company for continued success.”
Tom Praschak, President and CEO of CompassMSP said, “Our mission is to make enterprise-level IT services accessible to small and medium-sized businesses. The Company is recognized as one of the fastest growing MSPs and we expect to continue this path of growth with further investments in our organization and with additional acquisitions. To deliver on that strategy, we needed to partner with a firm that shared our vision and values and who could grow with us. After a thorough search, we are excited to partner with Route 2 Capital Partners and value their flexibility and value-added approach. We look forward to their support as we accelerate our next stage of growth.”
Please contact Scott Kester, Patrick Weston, Jay White, or Spalding White to discuss this transaction or other investment opportunities.
CompassMSP is a leading provider of enterprise quality managed services for the SMB market. We offer comprehensive on-premises and cloud solutions ranging from managed IT and VOIP to software development. Our IT-as-a-Service (ITaaS) solutions enable us to become your IT business partner providing powerful, secure, and cost-effective IT infrastructure, operations, and services that help businesses grow. Our team of proven leaders and technical experts in managed IT services, combined with our focus on operational excellence, has provided us with a reputation for world-class customer service, long-lasting client relationships, and numerous industry awards and recognitions. This comprehensive approach ensures you can focus on your core business while we operate and optimize your IT in lock-step with you.
R2CP is a private investment firm providing flexible junior capital solutions to lower middle market companies, primarily in the southern U.S. The firm’s partners possess over 100 years of combined investment, transactional, and operational experience. R2CP seeks to invest in established companies with minimum annual revenues and EBITDA of $10 million and $2 million, respectively, that generate predictable and profitable cash flows. R2CP's investment proceeds will be used to execute growth and expansion plans, support business recapitalizations, and facilitate management buyouts. R2CP reviews opportunities in niche manufacturing, business and healthcare services, and specialty distribution. For more information, visit www.route2capital.com.